SAIL loss casts shadow over employee bonus

SAIL plunged to a net loss of Rs 321 cr in the first quarter of the current fiscal

The Steel Authority of India Limited (SAIL), state-run country’s largest integrated iron and steel producer, had reportedly denied annual bonus to the workers citing company’s loss.

During the production-productivity meeting held in New Delhi on Thursday, the SAIL management informed the trade union representatives that the company was not in a position to give annual bonus to the workers this year. Normally, the bonus is being disbursed during Dussehra-Diwali festival. The officials said SAIL had not yet recovered from the loss that it had recorded in the first quarter of the current fiscal.

Following higher power costs and competition from cheap imports, SAIL plunged to a net loss of Rs 321.64 crore in the first quarter of the current fiscal. Of all the SAIL entities, only Bhilai Steel Plant (BSP) and Durgapur Steel Plant (DSP) could make profit. The decision of the company to deny bonus would be effective in all the entities of the SAIL though the trade unions had refused to accept it.

“The trade unions would protest the decision at all the forums,” Vinod Kumar Soni, member of National Joint Committee on Steels (NJCS), said. The SAIL management had however kept the option open and convened the second round of meeting on October 18 to discuss the issue with the trade union representatives. The company spokesperson did not comment on the issue stating that he would check and revert.

According to officials, even if the management agreed for bonus under pressure from the unions, the amount would be less as compared to last year. In BSP, the workers received bonus of about Rs 18,000 on average in 2014.